Hong Kong
Company Formation

Hong Kong offers a favorable business environment, low taxes, easy company formation, and access to capital and skilled labor, making it an attractive destination for entrepreneurs and businesses looking to expand in Asia.

There are several advantages of setting up a company in Hong Kong, including:

• Strategic location: Hong Kong is strategically located at the heart of Asia, making it an excellent gateway to mainland China and other countries in the Asia-Pacific region. It has a modern and efficient transportation system that makes it easy to travel to other countries in the region.
• Business-friendly environment: Hong Kong is known for its business-friendly environment, with low taxes, simple tax system, and stable political and economic climate. It is ranked as the world's freest economy by the Heritage Foundation and the Fraser Institute.
• Easy company formation: Setting up a company in Hong Kong is relatively easy and can be done quickly, with the process taking as little as one week. The government has implemented measures to streamline the process, making it easier for entrepreneurs to start a business.
• Low taxes: Hong Kong has one of the lowest tax rates in the world, with a maximum tax rate of 16.5% for corporations and 15% for individuals. There is no capital gains tax, no withholding tax, and no sales tax or value-added tax.
• Access to capital: Hong Kong is a major financial hub, and there is a wide range of financial institutions and investors available to provide capital for businesses. This makes it easier for startups and growing companies to secure funding.
• Strong rule of law: Hong Kong has a strong legal system based on English common law, which provides a high level of protection for businesses and investors. It has a well-established legal system, including a robust intellectual property protection regime, which makes it an attractive destination for businesses.

Hong Kong has a simple and straightforward tax system that is one of the most favorable for businesses in the world. The main types of taxes in Hong Kong are:

• Profits Tax: This is a tax on profits earned by businesses in Hong Kong. The current tax rate is 16.5% for corporations and 15% for unincorporated businesses.
• Salaries Tax: This is a tax on income earned by employees in Hong Kong. The tax rates range from 2% to 17%, depending on the amount of income earned.
• Property Tax: This is a tax on rental income from properties located in Hong Kong. The tax rate is 15% of the net assessable value of the property.
• Stamp Duty: This is a tax on certain types of transactions, such as the sale and purchase of property, the transfer of shares, and the issuance of certain types of securities. The tax rates vary depending on the type of transaction.
• Goods and Services Tax (GST): There is no GST or value-added tax in Hong Kong.

It is worth noting that there is no capital gains tax, estate tax, or inheritance tax in Hong Kong.

In addition, Hong Kong has signed agreements with more than 40 countries to avoid double taxation, which means that businesses in Hong Kong only pay tax in one jurisdiction, even if they have operations in multiple countries.

Overall, Hong Kong's simple and low tax system, coupled with its extensive network of double taxation agreements, makes it an attractive destination for businesses looking to minimize their tax liabilities.